1. Assume that firms have their choice of investment project. A safe investment of $100 turns into $110 with certainty. A risky investment is equally likely to turn $100 into $200 or $0. Everyone is risk neutral and the risk-free rate is 3%. There are 60 identical firms that seek to maximize expected profit. Lenders cannot observe a firm's choice of project. d. How much is the minimum amount of collateral that enables the bond market to exist?